What is a

 

 

What is a HECM reverse mortgage?

A HECM reverse mortgage is a type of mortgage loan that is insured by the FHA (Federal Housing Administration) and is available only to homeowners aged 62 or older. It is different from all other types of mortgages because it is a loan that does not become due for as long as the homeowner lives in the property, maintains it, and pays property taxes and insurance.

According to the AARP’s 2006 survey, reverse mortgages are most often used to pay off an existing mortgage or pay for medical and daily living expenses